Based on some data and research in the field, VISI predicts that the fintech industry sector will experience growth in the range of 8 to 11 percent when compared to 2018. The Financial Technology Industry or better known as Fintech is a business that is experiencing very rapid development in the last three years, especially in the category of payment gateways and online loans (peer-to-peer lending). Although the business prospects are well, there are still many obstacles that must be resolved immediately. One of them being the balance between business, social and technology. This is needed to support security and comfort in the use of these services. Other than that, the need for encouragement to public understanding of financial products offered by fintech services. Not only in terms of the ability of the community to be able to access the fintech, but also knowledge about the user’s ability to fulfill their responsibilities of going forward.
The Financial Services Authority (FSA) is still designing rules regarding fintech’s principle. These rules will be a counterweight in the midst development of fintech in Indonesia, of which is rapidly growing.
Based on data from the OJK in July 2019, there were 127 fintech companies that have been registered and supervised by the OJK. Out of the 127 companies, there are 119 companies that are of conventional business type and 8 companies of which are of Syariah type. As for capital, 88 companies have local capital while the remaining 39 companies have foreign capital.
Specifically, the growth of the fintech industry has become more positive after the Financial Services Authority (OJK) has issued several regulations related to fintech, namely OJK Regulation No. 77 of 2016 concerning Information Technology-Based Lending and Borrowing Services and OJK Regulation No. 13 of 2018 concerning Digital Financial Innovation.
Until July 2019, there were 518,640 lenders or debtors for the fintech company which were 515,436 local debtors and 3,204 foreign debtor entities. The Indonesian Fintech Association (AFTECH) said that the high growth of the fintech industry in Indonesia in the last few years was due to several factors, especially the increased use of cellular telephones, technological advancements and changes in the lifestyle of Indonesian people, especially the lifestyle of the millennial generation.
In July 2019, there were 11,415,849 creditors with 39,804,357 registered accounts. The three regions with the most users are West Java (28.74 percent), DKI Jakarta (24.45 percent), and East Java (11.89 percent). It is recorded that 3,280,324 creditors are from the province of West Java, 2,790,553 creditors are from the province of DKI Jakarta and 1,357,338 creditors are from the province of East Java. This is understandable considering the region has a high level of population density, living costs, and lifestyle. With the existence of fintech services, it caters people the ease in obtaining bailout funds for unexpected business.
If we were to look at the amount of funds disbursed, it is noted that by now the funds that has been channelled has now reached IDR 49,794,010 billion, which are mostly channelled to creditors in the West Java and DKI Jakarta areas at IDR 16,162.69 billion. The distribution of loan funds is still predicted to continually increase along with the increasingly familiar fintech services in the social, even some fintech companies are targeting to increase at least 30 precent in 2019. This indicates that they believe that their business is still very lucrative with great business potential.